East Africa Infrastructure Opportunities 2025: The Standard Gauge Railway Era

The East African Infrastructure Transformation

East Africa is undergoing the most significant infrastructure transformation in its post-independence history. Driven by a combination of sovereign development priorities, Chinese financing (increasingly supplemented by Western alternatives), DFI lending and private sector investment, the region's infrastructure pipeline is both large and diverse.

Tanzania Standard Gauge Railway

Tanzania's Standard Gauge Railway (SGR) is the most ambitious single infrastructure project on the East African continent. The full network — connecting Dar es Salaam to Mwanza (on Lake Victoria), Kigoma (on Lake Tanganyika), and the border crossings to Rwanda, Burundi, Uganda and DRC — represents a fundamental transformation of East and Central Africa's freight logistics.

Phase 1 (Dar es Salaam to Morogoro, 300km) is operational. Phase 2 (to Makutupora) is under construction. The full network, when complete, will reduce transit times for landlocked country freight materially and directly compete with the Northern Corridor (via Kenya) for Central Africa trade flows.

For international contractors, the SGR programme has already awarded major packages to Chinese contractors, but operations and maintenance, civil works and specialist subcontracting offer significant opportunity for international firms.

Kenya Port and Logistics Infrastructure

Kenya's port expansion programme is driven by the need to maintain Mombasa's competitive position against Dar es Salaam. The Kenya Ports Authority's expansion plan targets 3 million TEU capacity (from approximately 1.3 million currently). The LAPSSET Corridor — connecting Lamu port to Ethiopia and South Sudan — represents an additional strategic infrastructure investment of significant regional consequence.

Uganda East Africa Crude Oil Pipeline (EACOP)

TotalEnergies' EACOP project — connecting Uganda's Albertine Graben oilfields to Tanzania's Tanga port — is one of Africa's most controversial and most significant infrastructure investments. The 1,445km heated pipeline, at an estimated cost of $5 billion, is under construction. The project has attracted significant environmental campaigning from European groups, creating both commercial and reputational risk for involved parties.

Lycia's Advisory Position

Lycia advises international contractors, investors and DFI counterparties navigating East Africa's infrastructure landscape. Our advisory covers market entry strategy, counterparty due diligence, government relations, PPP structuring and risk management.